International Relations & Security

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India-US Agricultural Tariff Tussle

Context: The US is pressuring India to reduce agricultural tariffs to boost its farm exports. India is resisting due to concerns over food security, MSP, and unfair US subsidies.

Relevance of the Topic: Mains: Challenges in India-US trade relations; WTO subsidy norms and their impact on Indian agriculture

Contentious issues in India-US Bilateral Trade Agreement

One of the most contentious issues in the India-US Bilateral Trade Agreement (BTA) is the US government’s and the US agri-lobbies’ pressure on India to open its agriculture market. They are pushing India: 

  • To lower high tariffs on key agri-products like Rice and Maize in order to enable US agri-business to significantly expand their presence in India.
  • To remove restrictions on genetically modified (GM) corn.
  • Allow imports of Distillers Dried Grains with Solubles (DDGS), a byproduct of ethanol production.
  • Ease limits on Ethanol imports.

What benefits will the US gain?

Through tariff reduction and access to India’s markets, estimated benefits annually: 

  • $235 million/year if India removes restrictions on GM corn.
  • $434 million/year if the US corn is used for sustainable aviation fuel in India.
  • $137.5 million in 5 years if India allows imports of DDGS. 
  • The US would benefit from increased soy oil exports.

Why Is India not Agreeing?

India has resisted tariff reduction due to several concerns, all centered around protecting its agricultural sovereignty and food security:

  • Livelihood uncertainties for Farmers: Opening India’s agriculture to imports would create livelihood uncertainties for farming communities and pose a serious threat to its food security.
  • Unfair competition from the US subsidies:
    • The US’ farm subsidies have consistently increased over the past two decades- from $61 billion in 1995 to $215 billion in 2022. The US provides over $200 billion annually in farm subsidies, enabling its agri-businesses to export (dump) at prices below production cost. 
    • If India removes tariff protections, Indian farmers without such subsidy levels would be unable to compete, leading to market distortions.
  • Flawed WTO Subsidy Assessment: The WTO Agreement on Agriculture (AoA) uses a flawed methodology that compares current MSP with international prices from 1986-88, thus, inflating India’s subsidy levels unfairly.

If India yields to pressure and removes or reduces MSP, distressed farmers may abandon the production of critical food crops.

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Way Forward

India must: 

  • Refuse to reduce tariffs on key commodities unless the US agrees to significantly reduce its farm subsidies.
  • Continue to challenge the WTO’s flawed subsidy calculation methodology, pushing for inflation-adjusted or updated international reference prices.
  • Maintain its strong negotiating position in the WTO and BTA to prevent external pressure from undermining national interests.
  • Assert that India’s subsidies serve developmental goals, unlike the US, which uses subsidies to dominate export markets. 

Effects of Rising Military Expenditure 

Context: At the recent North Atlantic Treaty Organisation (NATO) summit in June, NATO members pledged to increase their military spending to 5% of their GDP by 2035, a significant jump from the previous target of 2%. 

Relevance of the Topic: Prelims: SIPRI Military Expenditure data.
Mains: Effects of Rising Military Expenditure. 

According to the Stockholm International Peace Research Institute (SIPRI)

  • Global military spending in 2024 hit a record $2.7 trillion, the highest year-on-year rise (9.4%) since 1988.
  • Top Five Military Spenders are: 
    • The US ($997 billion) 
    • China ( $314 billion)
    • Russia ($149 billion)
    • Germany ($88.5 billion)
    • India ($86.1 billion)
  • In terms of GDP percentage (excluding countries at war such as Russia, Ukraine and Israel), the highest spenders include:
    • Saudi Arabia (7.3%)
    • Poland (4.2%)
    • The US (3.4%) 
  • According to the Global Peace Index, in 2023, militarisation increased in 108 countries and the year saw the highest number of conflicts since World War II.
  • All of the NATO members (32) combined spent $1,506 billion, which makes it around 55% of global military spending. There is a concentration of spending in a few countries.

Military Expenditures in India: 

  • India is the fifth-largest military spender in the world, with an annual defence budget of $86.1 billion.
  • Military spending stands at 2.3% of India’s GDP. In comparison, the Public Health spending is only 1.84% of GDP, far below the 2.5% target of the National Health Policy.
  • Following Operation Sindoor, the government has approved an additional ₹50,000 crore for emergency defence procurement. This is over and above the regular ₹6.81 lakh crore annual defence allocation. In contrast, Ayushman Bharat, India’s flagship health insurance scheme covering 58 crore people, received just ₹7,200 crore in 2023-24.

Effect of Rising Military Expenditure: 

  • Loss of Post-Cold War Peace Dividend: After the Cold War ended (1991), global military spending declined significantly, dropping to its lowest level of 2.1% of world GDP by 1998. The current wave of remilitarisation risks undoing the post-Cold War peace dividend, where falling military spending allowed greater investment in health, education, and development.
  • Crowding Out of Social Sector Spending: Higher military budgets reduce funds for health, education, welfare, and poverty alleviation. Example: Spain refused NATO's 5% target, saying it would cut welfare spending by €300 billion. Study of 116 countries shows rising defence spending reduces public health investment, especially in middle- and low-income nations.
  • Hampers SDG Progress: Redirects funds from Sustainable Development Goals (SDGs) like ending poverty, ensuring health and education, combating climate change etc.  
  • Increases Climate Burden: According to a study by the Conflict and Environment Observatory, if NATO’s defence spending reached 3.5% of GDP, greenhouse gas emissions would increase 200 million tonnes annually.
  • Weaken Peace-Building Institutions: Rising military expenditure diverts global resources away from peace and development, leaving institutions like the United Nations severely underfunded. The UN's latest $44 billion budget has received only $6 billion in six months, forcing a cut to $29 billion despite growing humanitarian needs.
  • Humanitarian Consequences: Cuts to foreign aid (e.g., USAID closed down by Trump) may cause 14 million additional deaths by 2030, one-third being children.
  • Hurts Poor and Developing Countries: Poor and developing countries are forced to match defence spending trends, harming basic services. Lebanon spent 29% of GDP, Ukraine 34% on defence.

Dismal State of South Asian Economic Integration

Context: Despite being home to 25% of the global population, South Asia remains one of the least economically integrated regions in the world.

Relevance of the topic:

Prelims: About SAARC, SAFTA , key facts about economic integration in South Asia.

Mains: Reasons behind Poor economic integration in South Asia and its impact.

Economic and national security are often discussed separately, but they are deeply intertwined. 

Economic instability fuels unrest, while security threats disrupt trade and investment. 

No country can achieve lasting security without economic prosperity, and vice versa. E.g., Border disputes among South Asian nations significantly hamper trade and economic cooperation, preventing the region from achieving its full potential.

The South Asian region is one of the least economically integrated regions in the world. 

  • South Asia, the most populous region of the world (25% of the world’s population), represents a combined market of only $5 trillion in GDP. On the other side, the EU, with 5.8% of the world’s population, accounts for $18 trillion in GDP, and NAFTA has a GDP of $24.8 trillion. This clearly shows the underexploited capacity of the South Asian region.
  • South Asian Free Trade Area (SAFTA) was created under SAARC to foster trade Cooperation. Despite this, inter regional trade stands at just 5-7% of the total international trade - the lowest among all major regional blocs. The EU accounts for approximately 45% of total international trade, ASEAN accounts for 22% and NAFTA around 25%.
  • Current trade among SAARC (South Asian Association for Regional Cooperation) countries is just around $23 billion, far below the estimated $67 billion. United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), estimates South Asia's trade potential at $172 billion, with over 86% unexploited by 2020. Bangladesh has the highest unexploited proportion, at 93%, followed by the Maldives (88%), Pakistan (86%), Afghanistan (83%), and Nepal (76%).

Barriers to Regional Trade and Integration

High Intra-Regional Trade Costs

  • Intra-South Asia trade costs 114% of the value of goods, making regional trade more expensive than global trade. E.g., It is about 20% more costly for a company in India to trade with Pakistan than with Brazil, which is 22 times farther away. Intraregional trade costs for ASEAN are some 40% lower than intra-SAARC trade costs, at 76%, creating high incentives for interdependence in that bloc.
  • Underperforming SAARC and  SAFTA: SAARC had the aim of ending distrust and tension, but trust deficits and regional conflicts hinder the full implementation of agreements such as SAFTA. Despite SAFTA, trading with neighbours is not ‘free’. As estimated by the UNESCAP, in spite of trade liberalisation under SAFTA, intraregional trade in South Asia is less than a third of its potential.
  • Security and Trust Deficit: Political diversity, regional disputes, minority issues and terrorism are major obstacles to regional cooperation. Most SAARC countries are in conflict with each other, preventing effective regional integration. E.g., due to terror insurgencies and border disputes, bilateral trade between India and Pakistan fell from $2.41 billion in 2018 to $1.2 billion in 2024 and Pakistani exports to India fell from $547.5 million in 2019 to just $480,000 in 2024.
  • Absence of Strategic Vision: Regional forums lack leadership, enforcement, and long-term planning. E.g., SAARC summits are irregular, and often unproductive.

Impacts of Poor Regional Integration: 

  • Lesser trade opportunity means lesser capacity for innovation, production and investment in the people of the country.
  • South Asia’s trade-to-GDP ratio decreased from 47.30% in 2022 to 42.94% in 2024.
  • The World Bank reported a softened growth forecast of 5.8% for 2025, down from 6% in 2024. 
  • The trade deficit of the subregion has widened from $204.1 billion in 2015 to $339 billion in 2022.

Therefore, to exploit the full potential of the South Asian region, members must work actively to enhance intra-regional trade, keeping aside their bilateral conflicts.

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India curbs Jute and Flax Imports from Bangladesh

Context: India's Directorate General of Foreign Trade (DGFT) has restricted the import of select jute and flax products from Bangladesh to a single entry point, Nhava Sheva Seaport (JNPT) near Mumbai. The directive has added a new layer of complexity to an already delicate trade relationship between the two South Asian neighbours. 

Relevance of the Topic :Prelims: Key facts related to India-Bangladesh trade.

Mains: Impact of India’s Restriction on Jute and Flax Imports from Bangladesh.

The official notification cites quality control, traceability, and inspection uniformity as the primary reasons behind this move. 

India - Bangladesh Trade Relations:  

  • In FY24, Indian exports to Bangladesh stood at $13.3 billion, while imports were approximately $2.7 billion, highlighting the strategic leverage India holds. 
  • Jute trade has long been a cornerstone of Bangladesh’s exports to India.
  • Under regional frameworks like the South Asian Free Trade Area (SAFTA) and India’s Duty-Free Tariff Preference (DFTP) Scheme for Least Developed Countries (LDCs), Bangladesh has enjoyed near-complete duty-free access to the Indian market. 
  • The import value of raw jute from Bangladesh surged from $3.26 million in 2020 to $9.43 million in 2022, stabilising around $8.64 million in 2024. 
  • Imports of jute yarn increased from $2.06 million in 2020 to $3.82 million in 2023, underscoring Bangladesh’s dominance in natural fibre supply chains. 
  • The import of single flax yarn spiked from $95,107 in 2020 to $3.88 million in 2021.

However, this sharp growth also raised concerns within Indian regulatory bodies over potential misclassification, under-invoicing, and exploitation of less-monitored land ports. 

These inconsistencies raise valid concerns about compliance and origin, particularly when routed through smaller land ports lacking the digital and logistical infrastructure of seaports like Nhava Sheva.

Key Implications: 

Economic Impact on Bangladesh: 

  • This move blocks access through traditional land ports like Petrapole and Gede, which were commonly used for cross-border trade between India and Bangladesh. 
  • Bangladesh’s small and medium exporters rely heavily on land routes for cost-effective transportation, redirection to a seaport increases logistics costs and delays, affecting their competitiveness.

Impact on Bilateral Relations: 

  • While regulatory vigilance is justifiable, the unilateral nature of such actions risks denting bilateral trust. It may dampen investor confidence, harm small exporters, and strain the goodwill that has defined India-Bangladesh trade for decades. 
  • Sudden port restrictions or policy shifts risk unsettling an otherwise growing and mutually beneficial trade relationship.

Way Forward

  • Trade regulation must be accompanied by diplomatic engagement and institutional transparency. 
  • Formalise Comprehensive Economic Partnership Agreement (CEPA) to expand bilateral trade and investment.
  • Build shared inspection infrastructure.
  • Engage in bilateral consultations to ensure that trade flows remain not just regulated but resilient.

After pursuing an open door policy for decades, recent measures by India suggest a shift from trade liberalisation to trade management- to protect domestic interests, plug revenue leakages, and assert regulatory sovereignty. While the rationale may be economically sound, the execution must be diplomatically sensitive. 

Also Read: India restricts Bangladeshi Exports via all Land Ports 

Five-nation tour to deepen India’s Global South Outreach

Context: The Prime Minister of India is on a five-nation diplomatic tour from July 2 to 9 in Ghana, Trinidad & Tobago, Argentina, Brazil and Namibia aimed at deepening India's bilateral ties and strengthening India’s leadership role in the Global South. 

Relevance of the Topic: Prelims: Key Highlights of the visits; Location of the countries. Mains: Significance of the Global South Outreach 

This tour is significant for enhancing cooperation in areas like energy, economy, defence, healthcare, and capacity building. 

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Countries in the Tour: Purpose and Significance 

1. Ghana:  

  • First visit by an Indian PM to Ghana in the last three decades.
  • Ghana is one of West Africa’s fastest-growing economies, its relationship with India is marked by robust and expanding trade and investment.
  • Ghana is a valued partner in the Global South and plays an important role in the African Union and the Economic Community of West African States (ECOWAS).
  • India is the largest destination for Ghanaian exports; gold accounts for more than 70% of India’s imports from Ghana. 
  • India and Ghana have elevated their ties to the level of comprehensive partnership with the resolve to expand bilateral ties in food security, pharmaceuticals, and development cooperation. Ghana plans to emerge as the vaccine hub for Africa.
  • India-Ghana cooperation will be enhanced in areas- such as training of armed forces, maritime security, defence supply and cyber security. 
  • Indian companies will cooperate with Ghana in the exploration and mining of critical minerals. India would share its experience of UPI digital payments with Ghana. 
  • Prime Minister Modi was conferred with the country’s highest state honour, the Companion of the Order of the Star of Ghana during the visit for his distinguished statesmanship and influential global leadership.

2. Trinidad & Tobago: 

  • First bilateral visit by an Indian PM after 1999.
  • 40-45% of the Indian diaspora in the Caribbean lives in Trinidad and Tobago.
  • Both Prime Minister Kamla Persad-Bissessar and President Christine Carla Kangaloo are of Indian origin.
  • The visit will mark 180 years of the arrival of Indian immigrants in T&T.
  • The bilateral economic relationship has witnessed steady growth, with total trade reaching $341.61 million in FY 2024-25.

3. Argentina: 

  • First bilateral visit by an Indian PM in 57 years. 
  • Both countries will review ongoing cooperation and discuss ways to enhance defence, agriculture, mining, oil and gas, energy, etc. partnerships. 
  • Argentina is a key economic partner in Latin America and a G20 member.
  • India and Argentina have significantly advanced bilateral cooperation in the mineral resources sector, particularly in lithium, a critical input for India’s green energy transition.
  • Argentina is a major supplier of soybean and sunflower oil to India.
  • In 2024, India was Argentina’s fifth-largest trading partner and export destination.

4. Brazil: 

  • Brazil is India’s largest trading partner in South America.
  • Indian PM will meet Brazilian President during the BRICS Leaders’ Summit in Rio de Janeiro, which will be followed by a State Visit. 
  • At BRICS, the PM will discuss the reform of global governance, peace and security, strengthening multilateralism, responsible use of AI, climate action, global health, etc.
  • For the State Visit, the PM will travel to Brasilia where he will hold bilateral discussions on broadening the Strategic Partnership in areas of mutual interest, including trade, defence, energy, space, technology, agriculture, and health. 

5. Namibia: 

  • Bilateral trade has grown from less than $3 million in 2000 to almost $600 million now. 
  • Indian companies have invested in mining, manufacturing, diamond processing and services in Namibia.
  • Eight cheetahs from Namibia were released by the PM at Kuno National Park in Madhya Pradesh in 2022, the world’s first intercontinental translocation of a major carnivore species.
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Significance of India's Global South Outreach

  • Reinforces India’s leadership role in the Global South. 
  • Focus on South-South cooperation.
  • Strengthens India's economic diplomacy and strategic alliances.
  • Enhances cultural and diaspora linkages.
  • Counter China’s influence with democratic and transparent partnerships.
  • India reasserting itself as a voice of emerging economies.

Also Read: The Global South: origins and significance 

The diplomatic trip aims to reinforce partnerships on both sides of the Atlantic and strengthen India’s collaboration with regional and multilateral platforms including BRICS, the African Union, the Economic Community of West African States (ECOWAS), and the Caribbean Community, or CARICOM. 

BRICS as growth catalyst: 2025 BRICS Summit

 Context: The 2025 BRICS Summit will take place in Rio de Janeiro, Brazil on July 6-7. The 17th edition of BRICS Summit focuses on the theme- 'Strengthening Global South Cooperation’.

Relevance of the topic:

Prelims: Key facts about BRICS; New Development Bank. 

Mains: BRICS as platform for South-South Cooperation; Challenges faced by BRICS. 

About BRICS

  • BRICS is an intergovernmental organisation comprising ten countries- Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, United Arab Emirates and Indonesia.
    • The acronym ‘BRIC’ was coined by economist Jim O'Neill in 2001.
    • Founding countries of BRIC: Brazil, Russia, India, and China. 
    • First formal BRIC summit: Held in 2009 in Yekaterinburg, Russia
    • South Africa joined BRIC in 2010, transforming BRIC to BRICS. 
  • New members: Egypt, Ethiopia, Iran, and the UAE joined BRICS as full-time permanent members in 2024. Indonesia was admitted as the full-time member in 2025. 
  • BRICS was conceived as a counterweight to the Group of Seven (G7) developed economies, and has emerged as a formidable bloc for political and diplomatic coordination among Global South nations.

Objectives:

  • To promote economic growth, strengthen cooperation in areas like trade, investment, and infrastructure.
  • Coordination in global governance and advocating for reforms in institutions like the United Nations (UN) and International Monetary Fund (IMF). 
  • Cultural and social exchange by enhancing people-to-people connections.
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Economic Importance of BRICS+:

  • BRICS+ represents nearly 55% of the global population and accounts for nearly 40% of global GDP, based on purchasing power parity, exceeding that of the G7. 
  • Growing influence in global trade and investment through the New Development Bank. 
  • Contingent Reserve Arrangement (CRA) under BRICS USD 100 billion CRA is established to provide financial support to member countries in times of balance of payments crises.

New Development Bank

  • NDB is a multilateral development bank established by BRICS.
  • Objective: To mobilise resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs).
  • Initial authorised capital: $100 billion.
  • Headquarters: Shanghai, China.

BRICS as Platform for South-South Cooperation:

BRICS grouping has emerged as a significant platform for fostering South-South cooperation in the evolving global order. 

  • Diversified Representation: BRICS+ has included countries from Africa and Asia to enhance BRICS' representation of developing nations. Diverse BRICS gains legitimacy to advocate for Global South issues like fair-trade, climate justice, and technology access.
  • Economic Collaboration: Intra-BRICS integration encompasses free trade agreements and export-oriented strategies, including tariff exemptions and reductions. This encourages regional and inter-regional value chains, reducing over-dependence on Western supply chains. It would ultimately lead to trade expansion, and rise in both inward and outward foreign direct investment. 
  • Financial Independence:
    • The New Development Bank (to finance infrastructure and development projects) is a credible alternative to existing financial institutions (IMF, World Bank dominated by western powers).
    • BRICS nations have agreed to promote use of local currencies in trade. E.g., UAE and India trade in Rupees and Dirhams instead of the US Dollar. The current intra-BRICS trade stands at over $600 billion.
    • The plan to launch a common BRICS currency is under consideration. 
  • Global Governance Reforms: BRICS provides a platform to advocate for a more multipolar world order and reforms in global institutions like the WTO, IMF, and UN. E.g., reforms to the UNSC to include more representation from the Global South. The reforms would benefit Indian industry by ensuring fairer trade rules, better dispute settlement mechanisms, and more balanced development policies.
  • Technology Sharing: BRICS+ members share technology particularly in areas like digital payments and renewable energy. E.g., Collaboration in digital payment systems (India’s UPI and China’s Cross-Border Payment Systems). 

Challenges faced by BRICS:

  • Diverse Interests:
    • Member states have varying economic interests and geopolitical alignments which can hinder collective action. E.g., India and Brazil maintain strong ties with the US, while Russia and China adopt anti-West stances​. 
    • New members like Iran and UAE add to the ideological diversity complicating consensus-building.
  • Lacks Institutional Framework: BRICS lacks formal treaty or secretariat, or enforcement mechanisms and thus relies on consensus-based decision-making​. This makes it difficult for coordination and policy implementation.
  • External Pressures and Sanctions: BRICS members (particularly Russia) face economic sanctions from Western countries. This can limit their ability to cooperate and implement joint initiatives.
  • Internal Economic Challenges: Some BRICS members (such as Brazil and South Africa) face significant domestic economic challenges which can divert attention from regional cooperation.

BRICS+ marks an important step toward a multipolar world and empowerment of the Global South.  The need of the hour is to harmonise BRICS customs ecosystem- including Mutual Recognition Agreements, streamlined documentation, and the elimination of non-tariff barriers to facilitate smoother trade flows and economic cooperation. 

BRICS directly complements India’s long-term agenda of sustainability, digital leadership, and inclusive growth, making Indian enterprise a key driver of the bloc’s future direction.

What is the Border Dispute between Thailand and Cambodia?

Context: Thailand’s Constitutional Court suspended Prime Minister Paetongtarn Shinawatra from office after an ethics investigation over a leaked phone call with a senior Cambodian leader that followed a border row. 

The leaked call has set off political turmoil in Thailand as Shinawatra faces growing dissatisfaction over her handling of the conflict.

Relevance of the Topic: Prelims: Locations in News; Border Dispute between Thailand and Cambodia. 

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Border dispute between Thailand and Cambodia

  • Thailand and Cambodia share around 800 kilometres of land border. The contesting claims stem largely from a 1907 map drawn under French colonial rule that was used to separate Cambodia from Thailand. 
  • Cambodia has been using the map as a reference to claim territory, while Thailand has argued the map is inaccurate.
  • The most prominent and violent conflicts broke out around the 1,000-year-old Preah Vihear temple. In 1962, the International Court of Justice (ICJ) awarded sovereignty over the area to Cambodia and that became a major irritant in relations.
  • Cambodia went back to court in 2011. The ICJ reaffirmed the ruling in 2013, a decision that rattled Thailand. Thailand does not accept the jurisdiction of the ICJ and insists on solving conflicting border claims by the existing bilateral mechanism.
  • Cambodia maintains that it has submitted the case to the ICJ, and would no longer discuss these areas under the two countries' bilateral mechanism.
  • Additionally, Thailand and Cambodia share a 26,600 square kilometre area that overlaps their maritime boundary claims. 

The recent dispute was triggered in May 2025 after the armed forces of Thailand and Cambodia briefly fired at each other in a disputed area between Cambodia’s Preah Vihear province and Thailand’s Si Sa Ket province, in violation of a 2000 memorandum of understanding between the two countries.  

India-France Army Exercise: Shakti 2025

Context: The eighth edition of the India-France Army exercise, ‘Shakti 2025’, that started in June has concluded in France. 

Relevance of the Topic: Prelims: Key facts about Shakti 2025. 

India-France Army Exercise: Shakti 2025

  • Exercise SHAKTI is a biennial Joint Military Exercise between the Indian and French Armies. 
  • Aim: To enhance interoperability, operational coordination, and mutual understanding.
  • The 2025 edition focuses on joint operations in a sub-conventional environment under Chapter VII of the United Nations Charter, with training conducted in semi-urban terrain.
  • Specialist detachments from both sides engaged in Electronic Warfare (EW) and Counter-Unmanned Aerial System (C-UAS) training, incorporating signal interception, jamming, spectrum control, and drone-neutralisation exercises.

Exercise Shakti boosts joint operational preparedness and reaffirms the shared commitment towards peace, stability, and global security. 

India-France Military Exercises: 

Exercise Varuna: 

  • Annual bilateral Naval exercise between India and France. It was first started in 1983, and named Varuna later.
  • The joint-exercise is held either in the Indian Ocean or Mediterranean Sea.
  • Aim: To improve Indo-French coordination on capabilities like cross-deck operations, replenishment-at-sea, minesweeping, anti-submarine warfare and information sharing. 
  • It showcases the two nations' commitment to enhancing naval interoperability and operational synergy.

Exercise FRINJEX: 

  • The maiden Joint Military Exercise FRINJEX-23 between Indian Army and French Army was held in 2023.
  • Aim: To enhance inter-operability, coordination and cooperation between both forces at tactical level. 
  • The scope of the exercise involves establishment and operationalisation of a joint command post to secure an envisaged area for undertaking joint humanitarian assistance and disaster relief, establishing an Internally Displaced Population (IDP) camp and move of disaster relief material.

Exercise Tarang Shakti: 

  • It is a biennial multinational air combat exercise hosted by Indian Air Force. 
  • Aim: To showcase India's military capabilities and strengthen international cooperation among the participating nations. 
  • Tarang Shakti 2024 was the first edition of the exercise and the largest international air exercise hosted by India. France was one among the 11 countries that participated with military assets.  

The exercises cement defence cooperation with France which is a key aspect of the overall Indo-France Strategic Partnership.

Also Read: India – France: Strategic partners 

Congo and Rwanda sign a US-mediated Peace Deal

Context: The Democratic Republic of Congo (DRC) and Rwanda signed a peace deal facilitated by the U.S. to help end the decades-long deadly conflict in eastern Congo. The agreement helps the U.S. government and American companies gain access to critical minerals in the region.

Relevance of the Topic: Prelims: About Rwanda-DRC Conflict and Peace Deal.

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Background of the Conflict

  • Rwanda has two major ethnic groups: Hutu (majority) and Tutsi (minority, traditionally elite class). 
  • Under Belgian colonial rule, the Tutsis were favored, creating deep resentment among Hutus. This set the stage for ethnic strife, culminating in the 1994 genocide.

1994 Genocide

  • In 1994, after the assassination of Rwandan President Juvenal Habyarimana (a Hutu), radical Hutu militias launched a mass slaughter. Over 800,000 Tutsis and moderate Hutus were killed in 100 days.
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Spillover into the DRC

  • Following the genocide, Hutu perpetrators and civilians fled to eastern Democratic Republic of Congo. Among them were members of the Interahamwe, a brutal paramilitary force responsible for much of the genocide.
  • These elements later reorganised into an armed group known as the Democratic Forces for the Liberation of Rwanda (FDLR). Based in eastern DRC, the FDLR has continued to carry out cross-border attacks against Rwanda, seeking to destabilise the Tutsi-led government in Rwanda.
  • Rwanda considers the FDLR a serious national security threat. It has conducted multiple cross-border military operations inside Congolese territory, often justifying them as pre-emptive self-defence.
  • Rwanda is frequently accused of violating Congolese sovereignty and of arming proxy rebel groups like M23 to counter the FDLR and maintain influence over eastern DRC, especially due to its mineral wealth.
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Key Provisions of the Rwanda-DRC Peace Agreement: 

  • Signed in Washington D.C. under the mediation of the United States.
  • The peace deal aims to restore stability in eastern DRC and prevent further cross-border conflict between Rwanda and the Democratic Republic of Congo.
  • Both Rwanda and the DRC agreed to immediately cease all hostilities and armed operations against each other.
  • Both sides pledged to withdraw any direct or indirect support to armed militias operating in eastern DRC, including M23 and FDLR.
  • The deal emphasises the use of diplomatic dialogue and regional cooperation to resolve future disputes. The agreement reaffirmed respect for national borders, stressing the importance of non-intervention in internal affairs.

Why did the US mediate the Rwanda-DRC Peace Deal?

  • Eastern DRC is rich in minerals like cobalt, coltan, lithium, and rare earth elements essential for Electric vehicles (EVs), Semiconductors, and Renewable energy technologies.
  • Peace in eastern DRC opens the door for the US companies to invest in mining and infrastructure.
  • By stabilising the region, the US creates an opportunity to reduce dependence on China, which currently dominates global supply chains for these minerals.

The mediation reflects the US’s intent to project soft power and reclaim its image as a global peace broker.

Shanghai Cooperation Organisation (SCO)

Context: At the Shanghai Cooperation Organisation (SCO) Defence Ministers’ meeting in Qingdao (China), India declined to sign a joint statement over diluted language on terrorism, as it did not mention the Pahalgam attack but included militant activities in Balochistan. 

Relevance of the topic:

Prelims: Key facts about Shanghai Cooperation Organisation; Regional Anti-Terrorist Structure.

Mains: Shanghai Cooperation Organisation- Significance & Challenges. 

About Shanghai Cooperation Organisation

  • SCO is a prominent intergovernmental organisation that focuses on political, economic, and security-related cooperation among its member states. 
  • Founded: SCO was officially established on June 15, 2001, in Shanghai, China.
    • Predecessor: It evolved from the "Shanghai Five" group, which was formed in 1996 by China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan to address border security issues.
    • Expansion: Uzbekistan joined the group in 2001, leading to the formation of the SCO. India and Pakistan became full members in 2017, expanding the organisation's reach in South Asia. 
  • Membership:
    • 10 Full Members: China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India, Pakistan, Iran and Belarus. 
    • Observer States: Afghanistan, Mongolia are observer states.
    • Dialogue Partners: SCO also has several dialogue partners, including Turkey, Sri Lanka, Nepal, Azerbaijan, Armenia.
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Objectives: 

  • Security Cooperation: SCO primarily focuses on addressing regional security issues, combating terrorism, separatism, and extremism.
  • Economic Cooperation: It promotes economic cooperation, including trade, investment, energy partnerships, and infrastructure development.
  • Cultural Exchange: The SCO fosters cultural and humanitarian exchanges among member states to promote mutual understanding and trust.

Structure of SCO:  

  • Council of Heads of State: The highest decision-making body in the SCO, which meets annually to discuss and set the organisation's agenda.
  • Council of Heads of Government: Focuses on economic and trade cooperation and also meets annually.
  • Regional Anti-Terrorist Structure (RATS): Headquartered in Tashkent, Uzbekistan, RATS coordinates efforts to combat terrorism, separatism, and extremism. 

Regional Anti-Terrorist Structure (RATS):

  • RATS is a specialised permanent organ of the Shanghai Cooperation Organisation (SCO) that focuses on combating terrorism, separatism, and extremism within the member states. 
  • Established: RATS was established in 2004 as part of the SCO's broader efforts to address security challenges in the region.
  • Mandate and Objectives:
    • Counter-Terrorism: The primary mandate of RATS is to coordinate efforts among SCO member states to combat terrorism, which includes sharing intelligence, conducting joint operations, and enhancing legal frameworks.
    • Counter-Separatism: RATS also focuses on preventing and combating separatist movements that threaten the territorial integrity of member states.
  • Counter-Extremism: The organisation works to curb the spread of extremist ideologies that could lead to violence or destabilisation in the region.

Significance for India

SCO plays a significant role in the Eurasian region, with member states controlling a vast area, rich in natural resources, and a large population. India’s security, geopolitical, strategic and economic interests are closely intertwined with developments in the Central Asian region. 

  • Energy Security: Central Asian region is richly endowed with energy resources which India is trying to gain access to through Chabahar port construction in Iran and construction of International North-South Transport Corridor.
  • Economic Growth: SCO has high economic potential because 40% of the world's population lives in its countries, and they produce more than 22% of global GDP, that is by 2025, expected to reach 38-40%. 
  • Platform for Dialogue: SCO provides a platform for its members to engage in dialogue on regional and global issues, contributing to peace and stability in the region. 
  • Security Cooperation: RATS is viewed by India as a platform to access intelligence and information and as a solution to regional security cooperation as SCO remains committed to countering international terrorism, drug trafficking and resolving conflict in Afghanistan.
  • Gateway to Eurasia: India’s membership in the SCO is an opportunity for India to engage the Eurasian Economic Union (EEU) , thereby Eurasian market. 
  • Connect to Central Asia: SCO is a potential platform to advance India’s Connect Central Asia policy.
  • Balancing Power: SCO is seen as a counterbalance to Western alliances, particularly NATO, and has strengthened ties between China and Russia. SCO membership also bolsters India’s status as a major Pan-Asian player, which is boxed in the South Asian paradigm. 
  • Value alignment: “Shanghai spirit” emphasises harmony, non-interference in others’ internal affairs, and non-alignment - values that India has always cherished and upheld.
  • Forum for bilateral cooperation with China: It is yet another opening, like the BRICS summit last year, to bring down tensions, and ahead of the next informal summit in October in India.
  • Platform for India to engage Pakistan: In the absence of the SAARC summit, the SCO summit gives an opportunity for Indian and Pakistani leaders to meet informally, on the sidelines and to engage in anti- terrorism cooperation. Thus, SCO shall provide a platform to resolve their differences.

Challenges for India in SCO: 

  • Dominance of China and Russia: Russia and China as a co-founder of the SCO are the dominant powers in the groupings, thus limiting India’s ability to assert itself.
  • China’s Belt and Road Initiative: All group members except India have endorsed China’s BRI initiative. India on the other hand has repeatedly opposed China’s Belt and Road Initiative citing sovereignty issues arising out of CPEC.
  • India-Pakistan rivalry: India and Pakistan are in continuous confrontation that makes it difficult to adhere to the idea of “good-neighbourliness” prescribed in Article 1 of the SCO charter.
  • Definition of Terrorism: India’s definition of terrorism is different from the definition of SCO under RATS. For SCO, terrorism coincides with regime destabilization, whereas for India it is related to state- sponsored cross border terrorism.

SCO is part of India’s stated policy of pursuing “multi-alignments.” Hence, India must continue to look for positive engagement with the member nations of this organisation.

Significance of Iran for India

Context: India’s stakes in its relationship with Iran go far beyond crude oil. The recent conflict between Israel and Iran, leaves India in a difficult spot in balancing its policy with Iran and Israel.

Relevance of the topic:

Prelims: About Chabahar port, INSTC, Tehran Declaration, New Delhi Declaration

Mains: Significance of Iran for India.

Iran has been a long-standing diplomatic and economic partner to India. 

India’s relations with Iran

  • India and Iran share ancient civilisational ties- common cultural, linguistic, and ethnic roots.
  • India signed a Friendship Treaty with Iran in 1950, committing to perpetual peace and friendship.
  • Two landmark agreements:
    • Tehran Declaration (2001): Aimed at boosting cooperation in energy, trade, and security.
    • New Delhi Declaration (2003): Covered various areas of bilateral cooperation, including economic collaboration, hydrocarbons, science and technology, education, reconstruction of Afghanistan and combating international terrorism.

Iran is important to India for multiple reasons, including its geographical location and rich energy resources. 

Significance of Iran to India: 

  • Strategic Location in West Asia: Iran lies at the crossroads of West Asia, Central Asia, and South Asia. It is located near the Strait of Hormuz, a critical choke point through which about 20% of global oil passes.
  • Gateway to Central Asia and Afghanistan: Iran offers an alternative land and sea route to access Afghanistan (bypassing Pakistan) and Central Asian Republics like Turkmenistan, Uzbekistan, Kazakhstan, etc.
  • Infrastructure Projects: India and Iran signed an MoU in 2015 to develop the Shahid Beheshti terminal at Chabahar Port. Chabahar port project being jointly developed in Iran is of crucial importance to India, as:
    • It would provide connectivity to Afghanistan and the resource-rich Central Asian countries, bypassing Pakistan.
    • Chabahar is a key link in the International North South Transport Corridor (INSTC), connecting India with Iran, Russia, Central Asia, and Europe, reducing transit time and cost while boosting trade with Eurasia.
    • It would counter China’s growing influence in the region, particularly its Belt and Road Initiative. 
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Important Oil Supplier to India

  • Before Western sanctions over its alleged nuclear program, Iran was one of India’s top three oil suppliers for many years. Critical infrastructure, such as the Mangalore Refinery and Petrochemicals Ltd, was built with the capability to process Iranian crude oil.
  • Iran was a preferred supplier for India as it used to extend favourable terms, including discounted prices and extended credit periods. Oil supplies continued irrespective of the UN sanctions against Iran.
  • Note: In 2018, when the US reimposed its sanctions after getting out of the nuclear deal, India used the rupee payment mechanism to partly pay for the oil in Indian rupee, to get past the US sanctions. 

Important Export Destination:  

  • Iran was an important export destination for certain items from India including semi/wholly milled rice, black tea, fertilisers, organic/inorganic/agro chemicals, pharmaceuticals, yarns and fabric.
  • Exports to Iran were as much as $5.3 billion in 2013. However, the fall was sudden and sharp since 2019, after India stopped buying oil from the country, with exports in FY25 at $1.24 billion. 

Exporters hope for a return to normal relationship with Iran, as the country holds a lot of potential for growth.

Review of the India-ASEAN AITIGA

Context: In a bid to increase Indian exporters’ utilisation of the India-ASEAN Free Trade Agreement, which is way below 50%, the government is collecting inputs from the industry to understand the possible reasons behind the underutilisation or non-utilisation and rectification of the issues.

Relevance of the topic:

Prelims: About India-ASEAN FTA.

Mains: Reasons behind the underutilisation or non-utilisation of INDIA-ASEAN FTA.  

India-ASEAN Free Trade Agreement

  • Formally known as the ASEAN-India Trade In Goods Agreement (AITIGA).
  • Signed in: 2009, Bangkok. Implemented in 2010.
  • Aim: To promote free flow of goods, enhance economic integration, and strengthen bilateral ties through: elimination or reduction of tariffs, improved market access, deeper economic cooperation. 
  • Members: Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia. 

Key Features of AITIGA: 

  • Coverage: Only trade in goods (services & investment covered in later agreements)
  • Tariff Reduction: Phased reduction/elimination on over 80% of tariff lines.
  • Sensitive List: Countries can maintain “sensitive” and “exclusion” lists for protection.
  • Rules of Origin (RoO): Minimum 35% value addition & change in tariff subheading is required. 
  • Safeguard Mechanism: Allows re-imposition of tariffs temporarily to protect domestic industry.
  • Dispute Settlement through consultation and mutual resolution mechanisms.

Evaluation of AITIGA: 

  • It has resulted in a steady widening of the trade deficit between India and the 10-member bloc. 
  • India’s exports to the ASEAN bloc declined 5.7% to $38.96 billion in FY25. While imports increased 5.6% to $84.16 billion, increasing the trade deficit to $45.2 billion in FY25 from about $8 billion in 2010.
  • More than half the exports taking place from India to the ASEAN countries are happening outside the free trade framework with exporters paying regular import duties (MFN rates) and not the preferential or zero-duties agreed under the pact.

Key Challenges in Utilisation of AITIGA:

  • Underutilisation of Duty Benefits: Less than 50% of Indian exporters use the FTA benefits.
  • Lack of Awareness: Many small exporters are unaware of procedures or benefits under AITIGA.
  • Complex Rules of Origin (RoO): Difficulty in understanding and meeting origin criteria for COO certification.
  • Procedural Delays: Delays in obtaining Certificate of Origin (COO). 
  • Conflicting interpretations of rules between Indian and ASEAN authorities.
  • Difficulties in customs clearance process and inconsistent guidance from logistics providers, agents, or consultants

Government Reviewing AITIGA:

  • Exporters were asked about their awareness of COO procedures and challenges in interpreting Rules of Origin.
  • Inputs sought on difficulties in tracing origin of raw materials and delays in obtaining COOs.
  • Concerns regarding documentation costs, agency fees, customs clearance issues, and inconsistent guidance from intermediaries were also invited.

Strategic Significance of ASEAN for India

  • Central to India’s Act East Policy. ASEAN is India’s 4th largest trading partner. 
  • Key to countering China in the Indo-Pacific region. 
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